Fuel Prices Surge with Brent Crude Increase
Effect of Brent Crude and INR-Dollar Exchange Rate
The price of petrol is directly influenced by changes in the price of Brent crude oil, which has recently seen a significant rise. Similarly, the strength of the Indian Rupee against the US Dollar plays a substantial role in the fluctuations in fuel prices.
Regional Variations in Fuel Prices
Today, on the third day of Navratri, the price of petrol in metro cities is the highest in Mumbai, while it is the lowest in Delhi.
- Petrol in Mumbai is priced at ₹106.31 per liter, while diesel stands at ₹94.27 per liter. In contrast,
- Chennai has petrol at ₹102.63 and diesel at ₹94.24 per liter.
- In Delhi, petrol is fixed at ₹96.72 per liter, with diesel at ₹89.62.
- Other cities like Ghaziabad have petrol priced at ₹96.50 and diesel at ₹89.68 per liter,
- while Noida’s petrol is at ₹96.79 and diesel at ₹89.96.
- Faridabad records petrol at ₹97.49 and diesel at ₹90.35 per liter.
International Crude Oil Prices
Brent Crude currently trades at $89.88 per barrel, having increased directly due to its December futures rising to $90 per barrel. Meanwhile, WTI Crude’s November futures traded at $86.75 per barrel today. It’s important to note that during the Russia-Ukraine conflict, crude oil reached a high of $139 per barrel.
Factors Affecting Petrol and Diesel Prices
The pricing of petrol and diesel is influenced by various factors, including the cost of Indian crude oil, dealer and refining margins, transportation costs, VAT (Value Added Tax), and Central Excise Duty. Different states impose varying state taxes, leading to different fuel prices in each region. Any changes in Central Excise Duty significantly impact fuel prices and can provide relief by lowering the increasing cost of petroleum.